AMC bonds move higher; Rite Aid up; Mallinckrodt little traded as company eyes options

By Cristal Cody

Tupelo, Miss., July 25 – AMC Entertainment Holdings, Inc. continued to gain traction in the junk and distressed secondary bond markets on Tuesday.

The bonds improved ½ point to ¾ point after trading more than 5 points better on Monday following a disappointing court ruling against the company.

AMC Entertainment’s 7½% senior secured first-lien notes due 2029 (Caa1/B-) added ½ point to head out at 75¾ bid on $19 million of volume, a source said.

AMC’s 10% senior secured second-lien notes due 2026 (Caa3/CCC-) traded up ¾ point to 70½ bid on $5 million of volume.

Rite Aid Corp.’s bonds also were higher, sources reported.

The 8% senior secured notes due 2026 (Caa3/CCC-/B) rose ½ point to 50½ bid on $5 million of trading.

Elsewhere, Mallinckrodt plc’s paper has been little traded in the secondary market since the company skipped paying the interest payments on two of its bonds in June and started exploring options for a second bankruptcy.

On Tuesday, a class action lawsuit against the company on behalf of debt holders was announced.

Mallinckrodt’s 10% second-lien notes due 2025 (Caa1/CCC+) were last seen in the prior week trading with a 14 bid handle, mostly unchanged from mid-June after it dropped in the first half of the month, a source said.

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